Amendment MR8 CSA1-AB1

LRBs0378/1

ALL:all:all

March 2008 Special Session

2007 - 2008 LEGISLATURE

CONFERENCE SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 1

May 12, 2008 - Offered by Committee of Conference on March 2008 Special Session Assembly Bill 1.

AB1-CSA1,2,11 An Act to repeal 16.526, 20.505 (1) (sd), 20.505 (1) (sh), 20.505 (1) (sm), 20.505 (1) (sp), 25.17 (1) (es) and 25.59; to renumber 40.08 (2), 71.34 (1) and 71.42 (1); to renumber and amend 71.26 (2) (a), 79.04 (4m) and 946.42 (1) (a); to amend 13.101 (6) (a), 13.40 (3) (b), 16.50 (1) (b), 16.518 (title), 16.52 (10), 16.527 (title), 16.527 (1), 16.527 (3) (b) 2. and 3., 16.527 (10), 16.63 (2), 20.003 (4) (ft), 20.003 (4) (fv), 20.505 (1) (br), 20.505 (1) (iq), 20.835 (1) (d), 20.866 (2) (uur), 25.69, 49.175 (1) (p), 66.0721 (title), 66.0721 (2), 66.0721 (3), 70.11 (intro.), 70.11 (4), 71.05 (6) (a) 15., 71.30 (2), 71.45 (2) (a) 10., 71.80 (1) (b), 86.30 (2) (e), 100.52 (1) (f), 118.14 (title), 118.153 (4) (b), 121.004 (7) (c) 1. (intro.), 121.004 (7) (cm), 121.007, 121.15 (1m) (a) 3., 121.15 (1m) (b), 350.12 (3j) (b), 628.348 (1) and 973.01 (2) (c) 2. a.; to create 16.518 (2m), 16.518 (3) (b) 3., 16.527 (1) (b), 16.527 (2) (d), 16.527 (2) (e), 16.527 (3) (c), 16.527 (8) (f), 20.255 (2) (at), 20.505 (1) (bq), 20.505 (1) (iw), 23.225, 23.245, 40.02 (48g), 40.05 (4r), 40.08 (2) (b), 40.80 (2t), 49.155 (6m), 66.0721 (1) (ae), 70.11 (4a), 70.11 (4b), 71.01 (1am), 71.01 (1t), 71.01 (5s), 71.01 (9ad), 71.01 (9am), 71.01 (9an), 71.05 (6) (a) 24., 71.05 (6) (b) 45., 71.05 (6) (b) 46., 71.22 (1b), 71.22 (1tm), 71.22 (3m), 71.22 (9ad), 71.22 (9am), 71.22 (9an), 71.26 (2) (a) 7., 71.26 (2) (a) 8., 71.26 (2) (a) 9., 71.34 (1am), 71.34 (1b), 71.34 (1e), 71.34 (1k) (j), 71.34 (1k) (k), 71.34 (1k) (L), 71.34 (1L), 71.34 (1p), 71.34 (1r), 71.42 (1b), 71.42 (1s), 71.42 (1t), 71.42 (4d), 71.42 (4m), 71.42 (4n), 71.45 (2) (a) 16., 71.45 (2) (a) 17., 71.45 (2) (a) 18., 71.80 (23), 79.04 (4m) (b), 100.52 (1) (bm), 118.14 (3), 121.15 (1m) (a) 4., 946.42 (1) (a) 1. bm., 946.42 (1) (a) 1. c. and h., 946.42 (2m) and 946.42 (4) of the statutes; and to affect 2007 Wisconsin Act 20, section 9201 (1c) (a); relating to: state finances and appropriations.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB1-CSA1, s. 1 Section 1. 13.101 (6) (a) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB1-CSA1,3,9 13.101 (6) (a) As an emergency measure necessitated by decreased state revenues and to prevent the necessity for a state tax on general property, the committee may reduce any appropriation made to any board, commission, department, or the University of Wisconsin System, or to any other state agency or activity, by such amount as it deems feasible, not exceeding 25% of the appropriations, except appropriations made by ss. 20.255 (2) (ac), (at), (bc), (bh), (cg), and (cr), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax), and (6) (af), (aq), (ar), and (au), 20.435 (6) (a) and (7) (da), and 20.437 (2) (a) and (dz) or for forestry purposes under s. 20.370 (1), or any other moneys distributed to any county, city, village, town, or school district. Appropriations of receipts and of a sum sufficient shall for the purposes of this section be regarded as equivalent to the amounts expended under such appropriations in the prior fiscal year which ended June 30. All functions of said state agencies shall be continued in an efficient manner, but because of the uncertainties of the existing situation no public funds should be expended or obligations incurred unless there shall be adequate revenues to meet the expenditures therefor. For such reason the committee may make reductions of such appropriations as in its judgment will secure sound financial operations of the administration for said state agencies and at the same time interfere least with their services and activities.

AB1-CSA1, s. 2 Section 2. 13.40 (3) (b) of the statutes is amended to read:

AB1-CSA1,3,14 13.40 (3) (b) An appropriation to honor a moral obligation undertaken pursuant to ss. 16.526 (8), 16.527 (10), 18.61 (5), 85.25 (5), 101.143 (9m) (i), 229.50 (7), 229.74 (7), 229.830 (7), 234.15 (4), 234.42 (4), 234.54 (4) (b), 234.626 (7), 234.93 (6), 234.932 (6), 234.933 (6), and 281.59 (13m).

AB1-CSA1, s. 3 Section 3. 16.50 (1) (b) of the statutes is amended to read:

AB1-CSA1,3,17 16.50 (1) (b) This subsection does not apply to appropriations under ss. 20.255 (2) (ac), and (at), 20.835, and 20.865 (4).

AB1-CSA1, s. 4 Section 4. 16.518 (title) of the statutes is amended to read:

AB1-CSA1,3,21 16.518 (title) Transfers Reductions in school aid; delayed payment and transfers to the budget stabilization fund and the cash building projects fund.

AB1-CSA1, s. 5 Section 5. 16.518 (2m) of the statutes is created to read:

AB1-CSA1,4,2 16.518 (2m) (a) If the amount of moneys projected to be deposited in the general fund during the fiscal year that are designated as "Taxes" in the summary are less than the amount of such moneys actually deposited in the general fund during the fiscal year, the secretary shall reduce the amount of the delayed general school aid payment required under s. 121.15 (1m) (a) 4. by the difference.

AB1-CSA1,4,6 (b) If there is a balance remaining after the amount of the delayed general school aid payment required under s. 121.15 (1m) (a) 4. is reduced to zero under par. (a), the secretary shall use it to reduce the amount of the delayed general school aid payment required under s. 121.15 (1m) (a) 3.

AB1-CSA1, s. 6 Section 6. 16.518 (3) (b) 3. of the statutes is created to read:

AB1-CSA1,4,10 16.518 (3) (b) 3. If the amounts of the delayed general school aid payments required under s. 121.15 (1m) (a) 3. and 4. are not reduced to zero under sub. (2m), the secretary may not make the transfer under par. (a).

AB1-CSA1, s. 7 Section 7. 16.52 (10) of the statutes is amended to read:

AB1-CSA1,4,15 16.52 (10) Department of public instruction. The provisions of sub. (2) with respect to refunds and sub. (5) (a) with respect to reimbursements for the prior fiscal year shall not apply to the appropriation appropriations under s. 20.255 (2) (ac) and (at).

AB1-CSA1, s. 8 Section 8. 16.526 of the statutes is repealed.

AB1-CSA1, s. 9 Section 9. 16.527 (title) of the statutes is amended to read:

AB1-CSA1,4,19 16.527 (title) Retirement of state's unfunded liabilities under the Wisconsin Retirement System; appropriation Appropriation obligations.

AB1-CSA1, s. 10 Section 10. 16.527 (1) of the statutes is amended to read:

AB1-CSA1,4,22 16.527 (1) Legislative finding and determination findings and determinations.

AB1-CSA1,5,7 (a) Recognizing that the state, by prepaying part or all of the state's unfunded prior service liability under s. 40.05 (2) (b) and the state's unfunded liability under s. 40.05 (4) (b), (bc), and (bw) and subch. IX of ch. 40, may reduce its costs and better ensure the timely and full payment of retirement benefits to participants and their beneficiaries under the Wisconsin Retirement System, the legislature finds and determines that it is in the public interest for the state to issue appropriation obligations to obtain proceeds to pay the state's anticipated unfunded prior service liability under s. 40.05 (2) (b) and to pay part or all of the state's unfunded prior service liability under s. 40.05 (2) (b) and the state's unfunded liability under s. 40.05 (4) (b), (bc), and (bw) and subch. IX of ch. 40.

AB1-CSA1, s. 11 Section 11. 16.527 (1) (b) of the statutes is created to read:

AB1-CSA1,5,12 16.527 (1) (b) The legislature finds and determines that the purchase of any of the tobacco settlement revenues that had been sold by the secretary under s. 16.63 from the net proceeds of appropriation obligations issued under this section is appropriate and in the public interest and will serve a public purpose.

AB1-CSA1, s. 12 Section 12. 16.527 (2) (d) of the statutes is created to read:

AB1-CSA1,5,15 16.527 (2) (d) "Tobacco settlement agreement" has the meaning given in s. 16.63 (1) (b).

AB1-CSA1, s. 13 Section 13. 16.527 (2) (e) of the statutes is created to read:

AB1-CSA1,5,18 16.527 (2) (e) "Tobacco settlement revenues" has the meaning given in s. 16.63 (1) (c).

AB1-CSA1, s. 14 Section 14. 16.527 (3) (b) 2. and 3. of the statutes are amended to read:

AB1-CSA1,5,24 16.527 (3) (b) 2. The sum of appropriation obligations issued under this section for the purpose under subd. 1., excluding any obligations that have been defeased under a cash optimization program administered by the building commission and any obligations issued pursuant to subd. 3., and revenue obligations issued under s. 16.526, if any, may not exceed $1,500,000,000.

AB1-CSA1,6,6 3. The department may contract appropriation obligations as the department determines is desirable to fund or refund outstanding appropriation obligations issued under this section for the purpose under subd. 1., to pay issuance or administrative expenses, to make deposits to reserve funds, to pay accrued or funded interest, to pay the costs of credit enhancement, or to make payments under other agreements entered into under sub. (4) (e).

AB1-CSA1, s. 15 Section 15. 16.527 (3) (c) of the statutes is created to read:

AB1-CSA1,6,11 16.527 (3) (c) 1. Before July 1, 2009, subject to the limitation under subd. 2., the department may contract appropriation obligations of the state under this section for the purpose of purchasing any of the tobacco settlement revenues that had been sold by the secretary under s. 16.63.

AB1-CSA1,6,21 2. The sum of appropriation obligations issued under this section for the purpose under subd. 1., excluding any obligations that have been defeased under a cash optimization program administered by the building commission and any obligations issued pursuant to subd. 3., may not exceed $1,700,000,000, excluding amounts representing original issue discount, unless a higher amount is required by Badger Tobacco Asset Securitization Corporation to defease any outstanding indebtedness secured by such tobacco settlement revenues and to release repurchased tobacco settlement revenues to the state free and clear of any security interest therein. The secretary's certification as to the amount so required shall be conclusive for all purposes of this section.

AB1-CSA1,7,2 3. The department may contract appropriation obligations as the department determines is desirable to fund outstanding appropriation obligations issued under this section for the purpose under subd. 1., to pay issuance or administrative expenses, to make deposits to reserve funds, to pay accrued or funded interest, to pay the costs of credit enhancement, or to make payments under other agreements entered into under sub. (4) (e).

AB1-CSA1, s. 16 Section 16. 16.527 (8) (f) of the statutes is created to read:

AB1-CSA1,7,7 16.527 (8) (f) The department may enter into a contract with any firm or individual engaged in financial services for the performance of any of its duties under this section, using selection and procurement procedures established by the department. The contract is not subject to s. 16.705 or 16.75.

AB1-CSA1, s. 17 Section 17. 16.527 (10) of the statutes is amended to read:

AB1-CSA1,7,15 16.527 (10) Moral obligation pledge. Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that it shall make timely appropriations from moneys in the general fund that are sufficient to pay the principal and interest due with respect to any appropriation obligations in any year, to make payments of the state under agreements and ancillary arrangements entered into under sub. (4) (e), to make deposits into reserve funds created under sub. (3) (b) 3. or (c) 3., and to pay related issuance or administrative expenses.

AB1-CSA1, s. 18 Section 18. 16.63 (2) of the statutes is amended to read:

AB1-CSA1,7,19 16.63 (2) The Before July 1, 2009, the secretary may sell for cash or other consideration the state's right to receive any of the payments under the tobacco settlement agreement.

AB1-CSA1, s. 19 Section 19. 20.003 (4) (ft) of the statutes is amended to read:

AB1-CSA1,7,21 20.003 (4) (ft) For fiscal year 2007-08, $65,000,000 $25,000,000.

AB1-CSA1, s. 20 Section 20. 20.003 (4) (fv) of the statutes is amended to read:

AB1-CSA1,7,23 20.003 (4) (fv) For fiscal year 2008-09, $65,000,000 $25,000,000.